Configured a pretty cheap compy for my little brother. He's using it mostly for school work, some games (hellgate london), and media.
I think it will suffice.

Anyway here goes:
GFX: ASUS EN9600GSO TOP/HTDP/384M GeForce 9600 GSO 384MB 192-bit GDDR3 PCI Express 2.0 x16 HDCP Ready SLI Supported Video Card - Retail
http://www.newegg.com/Product/Prod [...] 6814121251

Case & PSU: Antec NSK4480 Black/ Silver 0.8mm cold-rolled steel construction ATX Mid Tower Computer Case 380W Power Supply - Retail
http://www.newegg.com/Product/Prod [...] 6811129031

DVD-RW: SAMSUNG 20X DVD±R DVD Burner Black SATA Model SH-S203B - OEM
http://www.newegg.com/Product/Prod [...] 6827151153

Mobo: GIGABYTE GA-G31M-S2L LGA 775 Intel G31 Micro ATX Intel Motherboard - Retail
http://www.newegg.com/Product/Prod [...] 6813128078

RAM: G.SKILL 2GB 240-Pin DDR2 SDRAM DDR2 800 (PC2 6400) Desktop Memory Model F2-6400CL5S-2GBPQ - Retail
http://www.newegg.com/Product/Prod [...] 6820231121

CPU: Intel Pentium E2180 Allendale 2.0GHz LGA 775 65W Dual-Core Processor Model BX80557E2180 - Retail
http://www.newegg.com/Product/Prod [...] 6819116052

Keyboard: LITE-ON SK-1788/BS 2-Tone PS/2 Wired Standard Keyboard - Retail
http://www.newegg.com/Product/Prod [...] 6823107120

HDD: Seagate Barracuda 7200.10 ST3250410AS 250GB 7200 RPM SATA 3.0Gb/s Hard Drive - OEM
http://www.newegg.com/Product/Prod [...] 6822148262

Total: $$446.88
Comes out to about $489 after shipping.

Can I improve? Can I make it cheaper without losing performance?
Thanks!!

Looks good but for 10 more dollars you can have double the HD space

How old is "little brother" and how long is the this computer expected to last?

If you're only going to run one card I would go for a 9600 GT the 512MB will make a difference. There are some decent cards at NewEgg for $140.

Also I agree with ragingazn628 about the HD space.

I'm not sure you could make it any cheaper, and keep it the same performance.

You can add a cooler and overclock that E2180.

For $3 more, This setup might get you a little more bang

1. Case + PS:
http://www.newegg.com/Product/Prod [...] 6811147095 $24.98
http://www.newegg.com/Product/Prod [...] 6817703017 $64.99 = Total $89.97

Replacing the Antec /w PS (total $89.94) for a cheaper case but a lot better PS. The Case is subjective to your own taste, however the PS is more wattage rating and from a very good quality maker.

2. Replace the Samsung($32.98) with this : http://www.newegg.com/Product/Prod [...] 6827106057 $30.99. It is retail so you get box that includes software, cable, screws, manual.

3. Replace G31mobo($72.58) with P31 : http://www.newegg.com/Product/Prod [...] 6813128077 ($72.58). P31 is much better suited if you want to OC, plus it supports 1066mhz RAM.

4. Replace your RAM($48.98) with these: http://www.newegg.com/Product/Prod [...] 6820231098 $44.99, esentially the same ram for a bit cheaper price.

Rest of the items should suffice. My total came out to be about $472.91 and /w Shipping $491.37.

thanks! I will look at those parts and see if I can swap anything around.

Good point - the G31 has onboard video and you don't need that since you're getting a video card anyway.

Anyone else have any other opinions? I'm getting close to purchasing!!!

Get one of the new HD 4850 video cards. It's huge bang for the buck.